SL GREEN REALTY CORP
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
SLG$50.78-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001040971-24-000025
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001040971-24-000031
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 189 previous paragraphs and 192 current paragraphs.
123 unchanged; 48 reworded; 20 added; 8 removed; 10 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Rental revenues increased due primarily to the consolidation of 10 East 53rd Street ($8.4 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024, partially offset by a lower contribution from our Same-Store Properties due primarily to increased vacancy at 555 West 57th Street ($2.5 million).
Current report
Interest income from real estate loans held by consolidated securitization vehicles
Current report
During the three months ended September 30, 2024, we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in Interest expense on senior obligations of consolidated securitization vehicles. As a result, the net impact is limited to the interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the three months ended September 30, 2023.
Current report
Other income increased primarily due to higher management, leasing, and construction management fee income ($10.2 million) and increased special servicing fees ($1.2 million) during the three months ended September 30, 2024 as compared to the same period in 2023.
Current report
Interest expense and amortization of deferred financing costs, net of interest income, increased primarily due to a decrease in interest capitalization in connection with properties that are under development or redevelopment ($15.4 million), and higher interest expense from the revolving credit facility ($3.0 million) due to an increase in the outstanding balance during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. These decreases were offset by the repayment of unsecured corporate term loans ($5.8 million) in the third quarter of 2023.
Current report
SUMMIT Operator tax benefit (expense)
Current report
Interest expense on senior obligations of consolidated securitization vehicles
Current report
During the three months ended September 30, 2024, we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third party interest income recognized in Interest income from real estate loans held by consolidated securitization vehicles. As a result, the impact is limited to interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the three months ended September 30, 2023.
Current report
Depreciation and amortization increased during the three months ended September 30, 2024 due primarily to the consolidation of 10 East 53rd Street ($3.7 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024.
Current report
Equity in net loss from unconsolidated joint ventures increased primarily due to increased vacancy at 280 Park Avenue ($3.2 million) and the disposition of our interest in 717 Fifth Avenue ($2.1 million) during the first quarter of 2024. These increases in loss were partially offset by a decrease in interest expense across our joint venture portfolio ($4.2 million).
Current report
During the three months ended September 30, 2024, we recognized a gain on the sale of Palisades Premier Conference Center ($7.3 million). During the three months ended September 30, 2023, we did not dispose of any properties.
Current report
Comparison of the nine months ended September 30, 2024 to the nine months ended September 30, 2023
Current report
Interest income from real estate loans held by consolidated securitization vehicles
Current report
During the nine months ended September 30, 2024, we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in Interest expense on senior obligations of consolidated securitization vehicles. As a result, the net impact is limited to the interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the nine months ended September 30, 2023.
Current report
Property operating expenses decreased due primarily to the deconsolidation of 245 Park in the second quarter of 2023 ($27.2 million) and the termination of the leasehold interest at 625 Madison Avenue upon conversion of the previous mezzanine debt investment in the fee interest at the property to an unconsolidated joint venture in the second quarter of 2023 ($3.8 million). These decreases were partially offset by increased real estate taxes ($2.6 million) at our Same-Store Properties.
Current report
SUMMIT Operator tax benefit (expense)
Current report
The increase in SUMMIT Operator tax expense for the nine months ended September 30, 2024 as compared to the same period in 2023 was the result of an adjustment made in the third quarter of 2024 related to 2023 projected tax expense being more than 2023 actual tax expense.
Current report
Interest expense on senior obligations of consolidated securitization vehicles
Current report
During the nine months ended September 30, 2024, we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third party interest income recognized in Interest income from real estate loans held by consolidated securitization vehicles. As a result, the impact is limited to interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the nine months ended September 30, 2023.
Current report
Depreciation and amortization decreased due primarily to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($48.5 million), partially offset by the consolidation of 10 East 53rd Street ($7.5 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024.
Removed paragraphs (8)
Previous report
Property operating expenses decreased due primarily to the deconsolidation of 245 Park in the second quarter of 2023 ($12.7 million) and decreased real estate taxes at our Acquired Properties ($0.7 million), partially offset by increased variable expenses ($2.7 million) and real estate taxes ($1.1 million) at our Same-Store Properties.
Previous report
Depreciation and amortization decreased due primarily to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($20.3 million), offset by an increase at our Same-Store Properties ($3.4 million) during the three months ended June 30, 2024.
Previous report
During the three months ended June 30, 2024, we recognized a loss on the sale of our interest in 625 Madison Avenue ($7.6 million). During the three months ended June 30, 2023, we did not sell any joint venture interests.
Previous report
Comparison of the six months ended June 30, 2024 to the six months ended June 30, 2023
Previous report
SUMMIT Operator tax expense
Previous report
Depreciation and amortization decreased due primarily to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($48.5 million) as well as at our Acquired Properties ($1.7 million), partially offset by an increase at our Same-Store Properties ($3.9 million) during the six months ended June 30, 2024.
Previous report
During the six months ended June 30, 2024, we recognized a loss on the sale of 719 Seventh Avenue ($2.0 million). During the six months ended June 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million).
Previous report
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
Reworded paragraphs (48)
Previous wording
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the ownership, management, operation, acquisition, development, redevelopment and repositioning of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Current wording
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the ownership, management, operation, acquisition, development, redevelopment, repositioning and financing of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Previous wording
As of June 30, 2024, we also managed one office building and one retail building owned by third parties encompassing approximately 0.4 million square feet (unaudited), and held debt and preferred equity investments with a book value excluding the impact of credit losses of $290.5 million, excluding approximately$7.5 million of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and preferred equity investments line item.
Current wording
As of September 30, 2024, we also managed one office building and one retail building owned by third parties encompassing approximately 0.4 million square feet (unaudited), and held debt and preferred equity investments with a book value excluding the impact of credit losses of $293.9 million, excluding approximately$9.3 million of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and preferred equity investments line item.
Previous wording
Refer to the 2023 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies and estimates, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, lease classification, revenue recognition, and debt and preferred equity investments. During the three and six months ended June 30, 2024, there were no material changes to these policies.
Current wording
Refer to the 2023 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies and estimates, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, lease classification, revenue recognition, and debt and preferred equity investments. During the three and nine months ended September 30, 2024, there were no material changes to these policies.
Previous wording
(4)Average starting office rent excluding new tenants replacing vacancies was $103.45 per rentable square feet for 165,556 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $96.79 per rentable square feet for 211,251 rentable square feet.
Current wording
(4)Average starting office rent excluding new tenants replacing vacancies was $110.32 per rentable square feet for 115,640 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $106.76 per rentable square feet for 540,288 rentable square feet.
Previous wording
Investment income decreased due to a lower weighted average debt and preferred equity investment balance for the three months ended June 30, 2024 as compared to the same period in 2023. For the three months ended June 30, 2024, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $331.3 million and 7.1%, respectively, as compared to $645.8 million and 5.8%, respectively, for the three months ended June 30, 2023.
Current wording
Investment income decreased due to a lower weighted average debt and preferred equity investment balance for the three months ended September 30, 2024 as compared to the same period in 2023. For the three months ended September 30, 2024, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $306.2 million and 6.4%, respectively, as compared to $608.7 million and 6.2%, respectively, for the three months ended September 30, 2023.
Previous wording
Property operating expenses decreased due primarily to the deconsolidation of 245 Park in the second quarter of 2023 ($27.3 million) and reduced real estate taxes at our Acquired Properties ($1.5 million), partially offset by increased real estate taxes ($1.3 million) at our Same-Store Properties.
Current wording
Property operating expenses decreased due primarily to the termination of the leasehold interest at 625 Madison Avenue upon conversion of the previous mezzanine debt investment in the fee interest at the property to an unconsolidated joint venture in the second quarter of 2023 ($3.8 million), partially offset by increased variable expenses ($1.3 million) and real estate taxes ($1.3 million) at our Same-Store Properties.
Previous wording
SUMMIT Operator expenses were higher for the three months ended June 30, 2024 as compared to the same period in 2023 primarily due to increased attendance.
Current wording
SUMMIT Operator expenses were higher for the three months ended September 30, 2024 as compared to the same period in 2023 due to increased variable expenses, including percentage rent, as a result of increased attendance.
Previous wording
Marketing, general and administrative expenses decreased to $20.0 million for three months ended June 30, 2024, as compared to $23.0 million for the same period in 2023 due lower compensation related expenses.
Current wording
Marketing, general and administrative expenses decreased to $21.0 million for the three months ended September 30, 2024, as compared to $22.9 million for the same period in 2023 due to lower compensation related expenses.
Previous wording
The decrease in SUMMIT Operator tax expense for six months ended June 30, 2024 as compared to the same period in 2023 was attributable to estimated taxes being less than actual taxes paid for 2023.
Current wording
The decrease in SUMMIT Operator tax expense for the three months ended September 30, 2024 as compared to the same period in 2023 was the result of an adjustment made in the third quarter of 2024 related to 2023 projected tax expense being more than 2023 actual tax expense.
Previous wording
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate
Current wording
Equity in net loss from unconsolidated joint ventures
Previous wording
During the three months ended June 30, 2024, we recorded $1.3 million of positive fair value adjustments related to derivatives that are not designated as hedges. During the three months ended June 30, 2023, we recorded a $17.0 million fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold.
Current wording
During the three months ended September 30, 2024, we recorded a $21.9 million positive fair value adjustment for the secured borrowing related to the previous sale of an interest at One Madison Avenue. This gain was offset by a $9.0 million fair value adjustment related to derivatives that are not designated as hedges for accounting purposes. During the three months ended September 30, 2023, we recorded a $10.2 million purchase price adjustment related to a previous transaction.
Previous wording
The following comparison for the six months ended June 30, 2024, or 2024, to the six months ended June 30, 2023, or 2023, makes reference to the effect of the following:
Current wording
The following comparison for the nine months ended September 30, 2024, or 2024, to the nine months ended September 30, 2023, or 2023, makes reference to the effect of the following:
Previous wording
Rental revenues decreased due primarily to the deconsolidation of 245 Park Avenue ($77.0 million) as a result of the sale of a joint venture interest during the second quarter of 2023 and a lower contribution from our Same-Store Properties ($7.4 million) due primarily to increased vacancy at 555 West 57th Street and 1350 Avenue of the Americas.
Current wording
Rental revenues decreased due primarily to the deconsolidation of 245 Park Avenue ($77.0 million) as a result of the sale of a joint venture interest during the second quarter of 2023 and a lower contribution from our Same-Store Properties due primarily to increased vacancy at 555 West 57th Street ($8.3 million), 1350 Avenue of the Americas ($4.0 million), and 885 Third Avenue ($2.9 million). These decreases were partially offset by the consolidation of 10 East 53rd Street ($17.0 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024.
Previous wording
The following table presents a summary of the commenced leasing activity for the six months ended June 30, 2024 in our Manhattan and Suburban portfolio:
Current wording
The following table presents a summary of the commenced leasing activity for the nine months ended September 30, 2024 in our Manhattan and Suburban portfolio:
Previous wording
(4)Average starting office rent excluding new tenants replacing vacancies was $89.96 per rentable square feet for 254,290 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $84.41 per rentable square feet for 492,130 rentable square feet.
Current wording
(4)Average starting office rent excluding new tenants replacing vacancies was $96.32 per rentable square feet for 369,930 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $96.11 per rentable square feet for 1,032,418 rentable square feet.
Previous wording
SUMMIT Operator revenues were higher for the six months ended June 30, 2024 as compared to the same period in 2023 primarily due to increased attendance.
Current wording
SUMMIT Operator revenues were higher for the nine months ended September 30, 2024 as compared to the same period in 2023 primarily due to increased attendance.
Previous wording
Investment income decreased due to a lower weighted average debt and preferred equity investment balance for the six months ended June 30, 2024 as compared to the same period in 2023. For the six months ended June 30, 2024, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $349.0 million and 7.5%, respectively, as compared to $644.3 million and 5.8%, respectively, for the six months ended June 30, 2023.
Current wording
Investment income decreased due to a lower weighted average debt and preferred equity investment balance for the nine months ended September 30, 2024 as compared to the same period in 2023. For the nine months ended September 30, 2024, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $334.6 million and 7.1%, respectively, as compared to $632.3 million and 5.9%, respectively, for the nine months ended September 30, 2023.
Previous wording
Other income increased primarily due to fee income related to the sales of 625 Madison Avenue ($11.5 million) and 719 Seventh Avenue ($3.5 million) during the six months ended June 30, 2024, and an increase in special servicing fees ($0.7 million) during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. These increases were offset by lower lease termination income ($6.5 million) during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, as well as fee income related to the 49.9% interest sale of 245 Park Avenue ($4.7 million) during the six months ended June 30, 2023.
Current wording
Other income increased primarily due to fee income related to the sale of 625 Madison Avenue ($11.5 million) as well as higher management, leasing, and construction management fee income ($13.3 million) and an increase in special servicing fees ($1.9 million) during the nine months ended September 30, 2024 as compared to the same period in 2023. These increases were offset by lower lease termination income ($6.4 million) during the nine months ended September 30, 2024 as compared to the same period in 2023, as well as fee income related to the 49.9% interest sale of 245 Park Avenue ($4.7 million) and One Madison Avenue ($2.8 million) during the nine months ended September 30, 2023.
Previous wording
SUMMIT Operator expenses were higher for the six months ended June 30, 2024 as compared to the same period in 2023 primarily due to increased attendance.
Current wording
SUMMIT Operator expenses were higher for the nine months ended September 30, 2024 as compared to the same period in 2023 due to increased variable expenses, including percentage rent, as a result of increased attendance.
Previous wording
Marketing, general and administrative expenses decreased to $41.3 million for the six months ended June 30, 2024, compared to $46.3 million for the same period in 2023, due to lower compensation related expenses.
Current wording
Marketing, general and administrative expenses decreased to $62.4 million for the nine months ended September 30, 2024, compared to $69.1 million for the same period in 2023, due to lower compensation related expenses.
Previous wording
Interest expense and amortization of deferred financing costs, net of interest income, decreased due to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($31.1 million), the repayment of unsecured corporate term loans ($6.2 million) in the third quarter of 2023, and the sale of 719 Seventh in the second quarter of 2024 ($2.5 million). These decreases were offset primarily by increased interest expense from the revolving credit facility ($7.5 million) due to a higher balance, a decrease in interest capitalization in connection with properties that are under development or redevelopment ($11.9 million) during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, and the consolidation of 10 East 53rd Street ($3.6 million) in the first quarter of 2024. The weighted average consolidated debt balance outstanding was $3.8 billion for the six months ended June 30, 2024, compared to $5.6 billion for the six months ended June 30, 2023. The consolidated weighted average interest rate was 5.20% for the six months ended June 30, 2024, as compared to 4.51% for the six months ended June 30, 2023.
Current wording
Interest expense and amortization of deferred financing costs, net of interest income, decreased due to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($31.1 million), the repayment of unsecured corporate term loans ($12.4 million) in the third quarter of 2023, and the sale of 719 Seventh in the second quarter of 2024 ($3.2 million). These decreases were offset by a decrease in interest capitalization in connection with properties that are under development or redevelopment ($26.9 million) during the nine months ended September 30, 2024 as compared to the same period in 2023, increased interest expense from the revolving credit facility ($10.5 million) due to a higher outstanding balance, and the consolidation of 10 East 53rd Street ($7.2 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024. The weighted average consolidated debt balance outstanding was $3.8 billion for the nine months ended September 30, 2024, compared to $5.0 billion for the nine months ended September 30, 2023. The consolidated weighted average interest rate was 5.15% for the nine months ended September 30, 2024, as compared to 4.64% for the nine months ended September 30, 2023.
Previous wording
Equity in net income (loss) from unconsolidated joint ventures increased due primarily to increased income at 2 Herald Square ($126.6 million) as a result of the $141.7 million gain on discounted debt extinguishment at the property during the six months ended June 30, 2024. The six months ended June 30, 2023 included $23.6 million of income recognized for holdover rent, interest and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor. Additionally, a $30.7 million gain on discounted debt extinguishment was recognized at 280 Park Avenue during the six months ended June 30, 2024. These increases were partially offset by a reduction of income at 919 Third Avenue ($5.6 million) due primarily to a reduction in lease termination income and increased interest expense.
Current wording
Equity in net income (loss) from unconsolidated joint ventures increased due primarily to increased income at 2 Herald Square ($128.3 million) as a result of the $141.7 million gain on discounted debt extinguishment at the property during the nine months ended September 30, 2024. In addition, a $30.7 million gain on discounted debt extinguishment was recognized at 280 Park Avenue during the nine months ended September 30, 2024. The nine months ended September 30, 2023 included $23.6 million of income recognized for holdover rent, interest and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor.
Previous wording
During the six months ended June 30, 2024, we recognized a gain on the sale of our interest in 717 Fifth Avenue ($24.9 million) and a loss on the sale of our interest in 625 Madison Avenue ($7.6 million). During the six months ended June 30, 2023, we recognized a loss on the sale of our interest in 121 Greene Street ($0.3 million).
Current wording
During the nine months ended September 30, 2024, we recognized a gain on the sale of our interest in 717 Fifth Avenue ($24.9 million) and a loss on the sale of our interest in 625 Madison Avenue ($7.3 million). During the nine months ended September 30, 2023, we recognized a loss on the sale of our interest in 121 Greene Street ($0.3 million).
Previous wording
During the six months ended June 30, 2024, we recorded a $55.7 million negative fair value adjustment relating to the consolidation of 10 East 53rd Street, partially offset by a $6.5 million positive fair value adjustment related to derivatives that are not designated as hedges. During the six months ended June 30, 2023, we recorded a $17.0 million fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold.
Current wording
During the nine months ended September 30, 2024, we recorded a $55.7 million negative fair value adjustment relating to the consolidation of 10 East 53rd Street and a $2.6 million negative fair value adjustment related to derivatives that are not designated as hedges for accounting purposes, partially offset by a $21.9 million positive fair value adjustment for the secured borrowing related to the previous sale of an interest at One Madison Avenue. During the nine months ended September 30, 2023, we recorded a $17.0 million fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold. This was partially offset by a $10.2 million purchase price adjustment related to a previous transaction.
Previous wording
Loss on sale of real estate, net
Current wording
Gain (loss) on sale of real estate, net
Previous wording
During the three months ended June 30, 2024, we recognized a loss on the sale of 719 Seventh Avenue ($2.0 million). During the three months ended June 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million).
Current wording
During the nine months ended September 30, 2024, we recognized a gain on the sale of Palisades Premier Conference Center ($7.3 million) and a loss on the sale of 719 Seventh Avenue ($2.1 million). During the nine months ended September 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million).
Previous wording
During the six months ended June 30, 2024, we recognized depreciable real estate reserves and impairments at 719 Seventh Avenue ($46.3 million) and 760 Madison Avenue ($13.7 million), reflective of $13.2 million of capitalized interest for 760 Madison Avenue, to reduce the carrying value of our investments based on the sales contracts that the Company entered into for these properties. In addition, we recognized depreciable real estate reserves and impairments related to our investment in 625 Madison Avenue ($5.9 million), which remained under contract for sale as of March 31, 2024 prior to the sale closing in the second quarter of 2024. During the six months ended June 30, 2023, we recognized depreciable real estate reserves and impairments related to 625 Madison Avenue ($305.9 million) following a strategic review of the property that addressed a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believed was appropriate.
Current wording
During the nine months ended September 30, 2024, we recognized depreciable real estate reserves and impairments at 719 Seventh Avenue ($46.3 million) and 760 Madison Avenue ($13.7 million), reflective of $13.2 million of capitalized interest for 760 Madison Avenue, to reduce the carrying value of our investments based on the sales contracts that the Company entered into for these properties. In addition, we recognized depreciable real estate reserves and impairments related to our investment in 625 Madison Avenue ($5.9 million), which remained under contract for sale as of March 31, 2024 prior to the sale closing in the second quarter of 2024. During the nine months ended September 30, 2023, we recognized depreciable real estate reserves and impairments related to 625 Madison Avenue ($305.9 million) following a strategic review of the property that addressed a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believed was appropriate.
Previous wording
During the three months ended June 30, 2024, we recognized a $17.8 million gain on discounted debt extinguishment at 719 Seventh Avenue.
Current wording
During the nine months ended September 30, 2024, we recognized a $17.8 million gain on discounted debt extinguishment at 719 Seventh Avenue.
Previous wording
During the six months ended June 30, 2024, we did not recognize any loan loss and other investment reserves. During the six months ended June 30, 2023, we recorded a $6.9 million loan loss reserve on one debt and preferred equity investment.
Current wording
During the nine months ended September 30, 2024, we did not recognize any loan loss and other investment reserves. During the nine months ended September 30, 2023, we recorded a $6.9 million loan loss reserve on one debt and preferred equity investment.
Previous wording
We estimate that for the remainder of the year ending December 31, 2024, we expect to incur $25.9 million of leasing capital expenditures and $22.3 million of recurring capital expenditures on existing consolidated properties. In addition, we expect to incur $54.4 million of development or redevelopment expenditures on existing consolidated properties, none of which will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $129.6 million, of which $104.3 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
Current wording
We estimate that for the remainder of the year ending December 31, 2024, we expect to incur $15.1 million of leasing capital expenditures and $12.1 million of recurring capital expenditures on existing consolidated properties. In addition, we expect to incur $26.1 million of development or redevelopment expenditures on existing consolidated properties, none of which will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $68.5 million, of which $57.2 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
Previous wording
As of June 30, 2024, we had liquidity of $0.9 billion, comprised of $708.6 million of availability under our revolving credit facility and $216.1 million of consolidated cash on hand, inclusive of $16.6 million of marketable securities. This liquidity excludes $205.3 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties or debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt and other obligations, as described above, upon maturity, if not before.
Current wording
As of September 30, 2024, we had liquidity of $0.7 billion, comprised of $507.5 million of availability under our revolving credit facility and $204.7 million of consolidated cash on hand, inclusive of $16.5 million of marketable securities. This liquidity excludes $156.1 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties or debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt and other obligations, as described above, upon maturity, if not before.
Previous wording
Cash, restricted cash, and cash equivalents were $315.8 million and $311.1 million as of June 30, 2024 and 2023, respectively, representing an increase of $4.7 million. The increase was a result of the following changes in cash flows (in thousands):
Current wording
Cash, restricted cash, and cash equivalents were $315.1 million and $309.3 million as of September 30, 2024 and 2023, respectively, representing a decrease of $5.8 million. The decrease was a result of the following changes in cash flows (in thousands):
Previous wording
Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the six months ended June 30, 2024, when compared to the six months ended June 30, 2023, we used cash primarily for the following investing activities (in thousands):
Current wording
Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the nine months ended September 30, 2024, when compared to the nine months ended September 30, 2023, we used cash primarily for the following investing activities (in thousands):
Previous wording
Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $134.2 million for the six months ended June 30, 2023 to $108.1 million for the six months ended June 30, 2024 due to decreased spending on development and redevelopment properties.
Current wording
Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $194.0 million for the nine months ended September 30, 2023 to $162.7 million for the nine months ended September 30, 2024 due to decreased spending on development and redevelopment properties.
Previous wording
During the six months ended June 30, 2024, when compared to the six months ended June 30, 2023, we used cash for the following financing activities (in thousands):
Current wording
During the nine months ended September 30, 2024, when compared to the nine months ended September 30, 2023, we used cash for the following financing activities (in thousands):
Previous wording
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of June 30, 2024, 64,814,035 shares of common stock and no shares of excess stock were issued and outstanding.
Current wording
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of September 30, 2024, 65,235,013 shares of common stock and no shares of excess stock were issued and outstanding.
Previous wording
As of June 30, 2024,36,107,719 shares have been repurchased under the program, excluding the redemption of OP units. We did not repurchase any shares under the program during six months ended June 30, 2024.
Current wording
As of September 30, 2024, 36,107,719 shares have been repurchased under the program, excluding the redemption of OP units. We did not repurchase any shares under the program during the nine months ended September 30, 2024.
Previous wording
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands):
Current wording
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three and nine months ended September 30, 2024 and 2023, respectively (dollars in thousands):
Previous wording
The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 32,210,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of June 30, 2024, 3.2 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Current wording
The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 32,210,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of September 30, 2024, 3.5 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Previous wording
During the six months ended June 30, 2024, 15,945 phantom stock units and 25,590 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $0.2 million and $2.4 million during the three and six months ended June 30, 2024, respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.2 million and $2.3 million during the three and six months ended June 30, 2023, respectively, related to the Deferred Compensation Plan.
Current wording
During the nine months ended September 30, 2024, 15,945 phantom stock units and 25,590 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $0.2 million and $2.6 million during the three and nine months ended September 30, 2024, respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.2 million and $2.5 million during the three and nine months ended September 30, 2023, respectively, related to the Deferred Compensation Plan.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Gain on sale of real estate, net
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
Rental revenues decreased due primarily to the deconsolidation of 245 Park Avenue ($36.3 million) as a result of the sale of a joint venture interest during the second quarter of 2023.
Previous report — wording carried elsewhere
Other income increased primarily due to fee income related to the sales of 625 Madison Avenue ($11.5 million) and 719 Seventh Avenue ($3.5 million) during the three months ended June 30, 2024. Other income for the three months ended June 30, 2023 included fee income related to the 49.9% interest sale of 245 Park Avenue ($4.7 million).
Previous report — wording carried elsewhere
Interest expense and amortization of deferred financing costs, net of interest income, decreased due to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($14.7 million) and the sale of 719 Seventh in the second quarter of 2024 ($2.5 million). These decreases were offset primarily by a decrease in interest capitalization in connection with properties that are under development or redevelopment ($8.5 million) and the consolidation of 10 East 53rd Street in the first quarter of 2024 ($3.6 million). The weighted average consolidated debt balance outstanding was $3.8 billion for the three months ended June 30, 2024, compared to $5.5 billion for the three months ended June 30, 2023. The consolidated weighted average interest rate was 5.21% for the three months ended June 30, 2024, as compared to 4.59% for the three months ended June 30, 2023.
Previous report — wording carried elsewhere
Equity in net income (loss) from unconsolidated joint ventures increased primarily due to a $30.7 million gain on discounted debt extinguishment recognized at 280 Park Avenue during the three months ended June 30, 2024.
Previous report — wording carried elsewhere
During the three months ended June 30, 2024, we recognized a depreciable real estate reserve and impairment related to the condominium units at 760 Madison Avenue ($13.7 million), reflective of $13.2 million of capitalized interest, based on the total of the sales contracts that the Company entered into for these units. During the three months ended June 30, 2023, we recognized depreciable real estate reserves and impairments related to 625 Madison Avenue ($305.9 million) following a strategic review of the property that addressed a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believed was appropriate.
Previous report — wording carried elsewhere
Equity in net income (loss) from unconsolidated joint ventures
Previous report — wording carried elsewhere
Loss on sale of real estate, net
Previous report — wording carried elsewhere
Depreciable real estate reserves and impairment
Previous report — wording carried elsewhere
Gain on early extinguishment of debt
Previous report — wording carried elsewhere
During the six months ended June 30, 2024, we recognized a $17.8 million gain on discounted debt extinguishment at 719 Seventh Avenue.